Novosibirsk, Russia, 2011, October 11-14

On Edgeworth and Walrasian equilibria for multiregional economic systems

On Edgeworth and Walrasian equilibria for multiregional economic systems

Vasil'ev Valery A.

Abstract

The paper deals with the core equivalence problem for a
multiregional economic system. It is shown that under non-satiation
and strict autarchy assumptions the two solutions, the Walrasian
allocations and the fuzzy core of a multiregional system, are
identical. Moreover, we have established that under the same
assumptions, the set of Edgeworth allocations coincides with the
fuzzy core of a system, as well. Summarizing, we get the main result
of the paper, asserting that, provided strict autarchy and
non-satiation requirements are satisfied, an allocation of a
multiregional economic system is a Walrasian allocation if and only
if its n-fold replica is in the core of the n-fold replica of a
system, for every n.

In conclusion, some applications to the competitive equilibrium
existence problem, based on the equivalence results obtained, are
discussed.